Major League Baseball (MLB) has declined a proposed $150 million investment from Amazon to assist the struggling regional sports network, Diamond Sports, according to sources. Diamond Sports, a subsidiary of Sinclair Broadcasting, filed for Chapter 11 bankruptcy protection last March due to the changing landscape of regional sports networks caused by cord-cutting and reduced advertising revenue.
Amazon had offered to invest $150 million in Diamond Sports and take over streaming broadcasts for the 11 baseball teams it covers, including the Texas Rangers, Atlanta Braves, and St. Louis Cardinals. However, MLB Commissioner Rob Manfred rejected the proposal because Amazon wanted a streaming deal for more than one year.
At an upcoming bankruptcy hearing, MLB plans to offer Diamond a deal that would reduce the media rights fees for three of the 11 teams in exchange for MLB gaining the digital rights for all Diamond teams in 2025.
While Diamond could still pursue a deal with Amazon, MLB appears to be aiming to strike its own streaming deals with Amazon or Apple starting in 2025.
This development comes as the YES Network and MSG announced a partnership to potentially offer games from the Yankees, Knicks, Nets, and Rangers on the same streaming site. Additionally, the NBA and NHL have secured plans to retain digital rights from Diamond starting in the 2024-25 season.
Sinclair has also made an offer to buy Diamond in exchange for dropping a $1.5 billion lawsuit against the parent company, alleging debt and excessive fees.
MLB and Amazon have not provided official comments on the matter.